RICHMONDPrime, well secured, freehold, high street retail & residential opportunity

48-49 George Street | TW9 1HJ

INVESTMENT SUMMARY

• Richmond upon Thames, is one of London’s most popular and prosperous boroughs offering a rare blend of urban and rural qualities within a major capital city.

• An affluent borough population of approximately 196,000 persons (GLA 2015) and a compact primary catchment population of circa 106,000 which is supplemented by a thriving tourist industry.

• An established and busy commercial centre with a flourishing retail offer encompassing an extensive array of mass market and specialist retailers including M&S, House of Fraser, H&M, Topshop/Topman, Tesco, WH Smith, Anthropologie, Reiss, Gant, Jo Malone, Molton Brown and Links.

• A prominent position on a 100% prime section of George Street and well secured to the undoubted covenants of Zara Home UK Limited (Guaranteed by ITX Merken B.V.) and T.M. Lewin & Sons Limited.

• Adjoining and nearby occupiers include GAP, Massimo Dutti, Tesco, Russell & Bromley, Holland & Barrett, Crew, Office, Pret-a-Manger, Leon, Accessorize, Joe & The Juice, Itsu and Whole Foods.

• Weighted average unexpired retail lease term (WAULT) to expiry is 5.3 years

• Current gross total income of £376,939 per annum exclusive.

• Offers in excess of £8,570,000 (Eight Million, Five Hundred and Seventy Thousand Pounds), subject to contract and exclusive of VAT for the freehold interest reflecting a net initial yield of 4.31% and a capital value of £800 per sq ft on the residential units, allowing for graduated purchasers costs.

LOCATION

The town has excellent road communications. The A307 runs directly through the town centre providing access to Kingston upon Thames, 4 miles (6.4km) to the south and ultimately the M25 (J10) via the A3. The A316 (Dual Carriageway) is located immediately to the north of Richmond Train Station and connects with the M3 motorway circa 6 miles (9.7km) to the east.

Richmond is served by mainline South West trains which provides regular direct services to London Waterloo (8 trains per hour) with a fastest journey time of 19 minutes and Windsor and Reading, with approximate journey times of 50 and 70 minutes respectively. The town is also served by London Underground via the District Line.

Heathrow, the UK’s largest international airport, is located circa 11 miles (18km) to the west via the M4, providing services to a wide variety of both domestic and international destinations. Gatwick Airport is located 30 miles (48km) to the south and can be reached in approximately 45 minutes by car.

M25

M25

M25

M3

M4

M4

13

14

154

3 21

12

1

NO

RTH

CIR

CULAR

NO

RT

H C

IRC

ULA

R

A205 SOUTH CIRCULAR

ISLINGTON

LAMBETH

KENSINGTON

WANDSWORTH

WIMBLEDON

RICHMOND

FULHAM

PUTNEY

CHELSEA

BATTERSEA

KEW

BARNES

CHISWICK

EALING ACTON

MAIDA VALE

HYDE PARK

REGENTSPARK

BLOOMSBURY

MAYFAIR

KEWGARDENS

OSTERLEYPARK

HAYES

FELTHAM

HOUNSLOW

CRANFORD

WEST DRAYTON

TWICKENHAM

KINGSTONUPON THAMES

CLERKENWELL

SOHO

RICHMONDPARK

GUNNERSBURYPARK

VICTORIA

COVENT GARDEN

NOTTING HILLEALING BROADWAY

CHISWICK PARK

RICHMOND

ACTON TOWN

SHEPHERD’S BUSH

HOLLANDPARK

MOORGATE

ELEPHANT& CASTLE

WATERLOO

MARBLE ARCH

PADDINGTON

STOCKWELL

VAUXHALL

SHOREDITCH

KING’S CROSSST PANCRASINTERNATIONAL

EUSTONSTATION

TERMINAL 4

TERMINAL 5

NORTH ACTON

ST PAULS

BRIXTON

EARLS COURT

EALING COMMON

GUNNERSBURY

ACTON CENTRAL YIEWSLEY

SOUTHALL

SOUTH ACTON

PUTNEY

CLAPHAM JUNCTION

MARYLEBONE

HAMMERSMITH

WEST END

THE CITY

HEATHROW

HAMMERSMITH

TERMINAL 1, 2 & 3

KNIGHTSBRIDGE

A4

A30

A30

A30

A316

A315

A316A315

A205

A307

A307

A219

A315A302

A501

A308

A306

A4

A4

A4

A3

A3

A3

A5 A1

A10

BRENTFORD

UXBRIDGE

TWICKENHAM

KEW BRIDGE

A40

A40

A40

RICHMOND

Richmond upon Thames is one of London’s most popular and affluent boroughs and is a highly sought after residential destination for young professionals and families who are attracted to its rich history, royal connections, extensive parkland, architecture and amenities. Tourism generates an estimated total annual economic benefit of £469 million drawing an average of 4.5 million visitors every year.

Tourism generates an estimated total annual economic benefit of £469 million drawing an average of 4.5 million visitors every year.

North Sheen Richmond Park Richmond GreenRichmond Riverside

Richmond BridgeHill Street

SUBJECT PROPERTYRichmond Rail /

Underground Station

Richmond Athletic Ground (London Scottish)

A316 Twickenham Rd

WholeFoods

Tesco George Street

House of Fraser

Ebay UK HQ

River Thames

Marks & Spencer

CATCHMENT & DEMOGRAPHICS

Richmond upon Thames has a primary catchment population of 106,000 and an estimated 280,000 persons within a 15 minute drive-time. There is an over representation of adults aged 25-44 and children aged under 14 highlighting the proliferation of young working age families and a growing population. In a recent survey conducted by Rightmove, Richmond was voted the happiest place to live in London.

The population in Richmond is very affluent and per capita spending is above the national average. In addition, there is a significantly above average percentage of working age adults categorised within the most affluent AB social group. Experian categorise 46.25% of the population (within the 15 minute drive-time) as being within the City Prosperity Mosaic grouping suggesting ‘high status city dwellers living in central location pursuing high reward careers’.

The Richmond office sector is focused on media, technology and financial services. Ebay, Paypal, Gumtree and Graze are represented, earning the town the nickname, ‘Silicon on Thames’. RBS, British American Tobacco, Philip Morris & Company, Serco and GSA Capital are also major employers in the borough, while GlaxoSmithKline, BskyB and Samsung amongst others all have significant UK headquarters nearby. In addition, the Royal BritishLegion Poppy Factory is based in Richmond where 32 million Remembrance poppies and 80,000 wreaths are produced annually.

RETAILING IN RICHMOND

Richmond is a busy and popular commercial business centre. It has a flourishing retail offer encompassing anextensive array of mass market and specialist retailers which attracts a significant number of tourists andvisitors. The compact nature of the town centre means there is little threat to the existing retail offer from new, large scale developments and Richmond is forecast to see a significant above average percentage growth in comparison spending by 2021.

Richmond’s prime retail activity is focused on George Street with House of Fraser anchoring its southern end with other notable retailers represented including M&S, H&M, Topshop/Topman, Boots, Tesco, WH Smith, Anthropologie, Reiss, Massimo Dutti, Gant, Jo Malone, Molton Brown, Crew, Office and Links.

SITUATION

The subject property is prominently situated in a 100% pitch on the prime section of George Street, directly opposite a Tesco Metro food store. Other major retailers adjoining and in the vicinity include GAP, Massimo Dutti, Russell & Bromley, Holland & Barrett, Crew, Office, Pret-a-Manger, Leon, Accessorize, Joe & The Juice, Itsu and Whole Foods.

DESCRIPTION

The subject property comprises two attractive buildings fronting George Street including well configured ground floor retail units with three, self-contained, residential flats above 49 George Street. The upper floors above the retail unit at 48 George Street form a ‘flying freehold’ above the adjoining Gap premises.

The retail units are arranged over ground floor only and currently trade as Zara Home and TM Lewin.

The three residential flats situated on the first, second and third floors above the Zara Home have separate access fronting onto George Street. All three flats are let on Assured Shorthold Tenancies. Each flat benefits from two bedrooms, an open plan living room/kitchen, bathroom and an en-suite shower room. Each flat also has a small remote storage cupboard at 4th floor level.

The property is located within the Central Richmond Conservation Area.

KISS THE HIPPO

50 metres

For more information on our products and services:www.experian.co.uk/goad | goad.sales@uk.experian.com | 0845 601 6011

Richmond (London)

Experian Goad Plan Created: 19/04/2018Created By: Green and Partners

Copyright and confidentiality Experian, 2017. © Crown copyright and databaserights 2017. OS 100019885

SCHEDULE OF TENANCIES & ACCOMMODATIONThe lettable floor area comprises 6,399 sq ft (594.4 sq m) arranged as follows:

COVENANT STRENGTH

Address Tenant Areas (sq ft) Lease Start Lease Expiry Rent PAX ERV Next RR 1954 L&T Comments

48 George Street T.M. Lewin & Sons Limited

Sales ITZA 494

25/07/2008 24/07/2023 £111,400 (£225 ZA)

£113,500 (£230) 24/06/2018 In

Rent review date is stated in the lease - June not July like the start date. A/16 on Ancillary Space. 7.5% negative allowance for unit width.

GF Sales 1,136

GF Ancillary 621

Total Area 1,757

49 George Street

Zara Home UK Limited

(Guaranteed by ITX Merken B.V.)

Sales ITZA 729

20/08/2008 19/08/2023 £206,000 (£266 ZA)

£176,250 (£230 ZA) 24/06/2018 In

Lease Guaranteed by ITX Merken B.V. Lease was taken on assignment from Crew Clothing Co. Limited in 2011. A/16 on Ancillary Space.

GF Sales 2,064

GF Ancillary 588

Total Area 2,652

Flat 1, 49a George Street

Lauren O’Mara and Thomas Henry Total Area 650 14/07/2017 13/07/2020 £19,200 £19,776 - N/A

£2,400 Deposit. RPI linked RR on every anniversary of the lease collar and cap at 3% and 7%.MBO after 12 mths with 2 mths notice.

Flat 2, 49a George Street

Joe Allen and Rachel Girling Total Area 650 12/10/2016 11/10/2019 £19,939 £20,537 - N/A

£2,400 Deposit. RPI linked RR on everyanniversary of the lease collar andcap at 3% and 5%.MBO after 12 mths with 2 mths noticeThe rent increased by 3.85% in 2017.

Flat 3, 49a George Street Stefania Monetti Total Area 690 23/10/2017 22/10/2020 £20,400 £21,012 - N/A

£2,400 Deposit. RPI linked RR on everyanniversary of the lease collar andcap at 3% and 5% respectively.MBO after 6 mths with 2 mths notice

Total Gross Income £376,939 £351,075

Tenant Financial Year End Turnover (000’s)

Pre-Tax Profit (000’s)

Net Worth (000’s) D&B Rating Comments

T.M. Lewin & Sons Limited 25 Feb 2017 £109,940,000 £2,707,000 £69,588,000 5 A1

Zara Home UK Limited 31 Jan 2017 £17,880,000 (£793,000) £3,339,000 2 A2 The lease is entirely guaranteed by ITX Merken B.V.

RESIDENTIAL COMMENTARY

Richmond is a highly sought after location for young professionals and families on both a rental and ownership basis. The market offers a wide range of homes from smaller flats and cottages to large Georgian and Victorian terraces.

Average flat prices in Richmond were recorded at £547,543 in December 2017. Speaking with a number of residential agents in the area, we are advised that flats similar to the subject property would attract sales interest of between £750 – 850 psf capital value in the open market.

In addition, we are advised that well configured, two bedroom flats within Richmond command rents in the region of £1,700 pcm.

TENURE

Freehold.

CURRENT INCOME PAX

Current gross total income of £376,939 pax

We are of the opinion that the current rental tone for this part of the street reflects circa £230 Zone A. We have applied a rate of A/16 to the ancillary areas.

SERVICE CHARGE

Further information is available on request.

ENERGY PERFORMANCE CERTIFICATES

EPCs are available upon request.

VAT

The property will be treated as a Transfer of Going Concern.

Date Address Tenant Type Rent Gross ZA (Net)

Feb 2017 18-20 George Street H&M RR £230

Dec 2016 59 George Street Ole & Stein OML £230.50 (net)

Oct 2016 36 George Street Leon OML £237.11 (net)

RETAIL RENTAL COMMENTARY

There has been significant positive letting activity on this part of George Street in recent years including the following:

Richmond has been found to be the happiest place to live in Greater London by a 2017 Rightmove survey.

Growth within the borough was 32% higher than the Greater London average.

Prime property values in Richmond have increased significantly over the past 10 years rising by an estimated 105.4% on average.

The market offers a wide range of homes from smaller flats and cottages to large Georgian and Victorian terraces.

INVESTMENT COMPARABLESDate Address Tenant Price Yield

May-18 55/56 George Street N. Courlander Jewellers

Exchanged - £2.4m 3.70%

Feb-18 8 Red Lion Street Franco Manca £3.25m 4.05%

Feb-18 53 George Street Carphone Warehouse £4.4m 4.25%

Oct-17 59 George Street Ole & Stein £5.5m 3.90%

Oct-17 44-55 George Street Massimo Dutti £7.6m 3.90%

May-17 35/38 George Street

Leon, Santander, Pret, Russell & Bromley

£21.34m 3.65%

MISREPRESENTATION ACT 1967The agents for themselves and for the vendors or lessors of the property whose agents they are give notice that: (i) these particulars are given without responsibility of The agents or the vendors or lessors as a general outline only for the guidance of prospective purchasers or tenants, and do not constitute the whole or any part of an offer or contract; (ii) The agents cannot guarantee the accuracy of any descriptions, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein and any prospective purchaser or tenant should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the accuracy of each of them; (iii) no employee of The agents (and their joint agents where applicable) has any authority to make or give any representation or warranty or enter into any contract whatsoever in relation to the property; (iv) VAT may be payable on purchase price and/or rent, all figures are quoted exclusive of VAT, intending purchasers or lessees must satisfy themselves as to the applicable VAT position, if necessary by taking appropriate professional advice; (v) except in respect of death or personal injury caused by the negligence of The agents, its employees or servants, The agents will not be liable, whether in negligence or otherwise howsoever, for any loss arising from the use of these particulars save to the extent that any statement made in these particulars has been made fraudulently. May 2018. Designed and produced by Creativeworld Tel: 01282 858200.

FURTHER INFORMATIONFor further information, including access to an extranet site and data room please contact:

David Freeman 020 7659 4830 david.freeman@greenpartners.co.uk

Ed Smith 020 7659 4831 ed.smith@greenpartners.co.uk

Patrick Over020 7659 4832patrick.over@greenpartners.co.uk

Simona Malinova020 7659 4826simona.malinova@greenpartners.co.uk

PROPOSAL We are instructed to seek in excess of £8,570,000 (Eight Million, Five Hundred and Seventy Thousand Pounds), Subject to Contract & Exclusive of VAT.

This reflects a blended net initial yield of 4.31% on the commercial element and a capital value of £800 per sq ft on the residential units, allowing for graduated purchaser’s costs.

green&partners020 7659 4848